COLLECTIVE AGREEMENT - Labourwork.alberta.ca/apps/cba/docs/1451-CBA4-2016_Redacted.pdf · 4.02...

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COLLECTIVE AGREEMENT BETWEEN SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS CANADA) (Hereinafter referred to as the Company) 3636 • 11A Street S.E. Calgary, Alberta T2G 3H3 AND INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 (Hereinafter referred to as the Union) January 1, 2016 to December 31, 2020

Transcript of COLLECTIVE AGREEMENT - Labourwork.alberta.ca/apps/cba/docs/1451-CBA4-2016_Redacted.pdf · 4.02...

COLLECTIVE AGREEMENT

BETWEEN

SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO.

(SIMMONS CANADA) (Hereinafter referred to as the Company)

3636 • 11A Street S.E. Calgary, Alberta

T2G 3H3

AND

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955

(Hereinafter referred to as the Union)

January 1, 2016 to December 31, 2020

TABLE OF CONTENTS

PURPOSE ....................................................................................................................... 1

ARTICLE 1.00 - RECOGNITION ..................................................................................... 1

ARTICLE 2.00 - UNION RIGHTS .................................................................................... 1

ARTICLE 3.00 - DEDUCTION OF UNION DUES ............................................................ 1

ARTICLE 4.00- MANAGEMENT RIGHTS ...................................................................... 2

ARTICLE 5.00 - HOURS OF WORK ................................................................................ 2

ARTICLE 6.00- OVERTIME ............................................................................................ 3

ARTICLE 7.00- RATES OF PAY .................................................................................... 7

ARTICLE 8.00- VACATIONS WITH PAY ........................................................................ 9

ARTICLE 9.00- GENERAL HOLIDAYS ........................................................................ 10

ARTICLE 10.00- SENIORITY ....................................................................................... 11

ARTICLE 11.00 -VACANCIES AND JOB POSTINGS .................................................. 12

ARTICLE 12.00- LAYOFF AND RECALL ..................................................................... 13

ARTICLE 13.00- BEREAVEMENT PAY ....................................................................... 13

ARTICLE 14.00- NO INTERRUPTION OF WORK ....................................................... 14

ARTICLE 15.00- GRIEVANCE AND ARBITRATION PROCEDURE ............................ 14

ARTICLE 16.00- LEAVE OF ABSENCE ....................................................................... 16

ARTICLE 17.00- GENERAL CONDITIONS .................................................................. 16

ARTICLE 18.00- ACCIDENT PREVENTION AND SAFETY ......................................... 17

ARTICLE 19.00 - HEALTH AND WELFARE .................................................................. 17

ARTICLE 20.00- GENERAL INFORMATION ............................................................... 18

ARTICLE 21.00- LABOUR/MANAGEMENT RELATIONS COMMITTEE ...................... 19

ARTICLE 22.00 - PRODUCTIVITY PLAN ...................................................................... 19

ARTICLE 23.00- DURATION ........................................................................................ 20

ARTICLE 24.00- SEVERANCE PAY ............................................................................ 20

LETTER OF UNDERSTANDING #1 .............................................................................. 22

LETTER OF UNDERSTANDING #2 .............................................................................. 23

LETTER OF UNDERSTANDING #3 .............................................................................. 24

LETTER OF UNDERSTANDING #4 .............................................................................. 25

LETTER OF UNDERSTANDING #5 .............................................................................. 27

LETTER OF UNDERSTANDING #6 .............................................................................. 29

PURPOSE

The Company and the Union desire to cooperate in establishing and maintaining conditions which will promote and improve industrial and economic relations between the Company and the employees covered by this Collective Agreement, and to set forth rates of pay, hours of work and provide methods for a fair and peaceful settlement of all disputes which may arise between them, so as to secure full employment, unrestricted operations and general stabilization of employment.

Now this Collective Agreement witnesseth:

ARTICLE 1.00 - RECOGNITION

1.01 The Union is recognized as the sole bargaining agent for all employees coming within the description of the unit of employees described in the Certification issued by the Alberta Labour Relations Board #1 025-91.

ARTICLE 2.00- UNION RIGHTS

2.01 It is recognized that Job Stewards may require time away from their work stations for the processing of grievances. Such time off shall be granted subject to the Job Steward first obtaining permission from management. Permission shall not be unreasonably withheld.

2.02 The Job Steward will receive their applicable rate in carrying out the Job Steward's duties. No more than four (4) in number and no more than one (1) employee from the same department, and shall be chosen from employees who have more than two (2) continuous years of service with the Company. Assistant Job Stewards may be appointed in addition to the Job Stewards.

2.03 All employees, to a maximum of two (2) employees that participate on the Bargaining Committee during contract negotiations will have their regular hourly wages paid for by the Company.

2.04 The Company shall supply office space to the Chief Job Steward when required for confidential matters concerning employees and a lockable filing cabinet for Company/Union confidential correspondence records.

ARTICLE 3.00 - DEDUCTION OF UNION DUES

3.01 During the period of this Collective Agreement, the Company agrees to commence deduction of the amount of Union dues from the first pay period in each month from all employees covered by this Collective Agreement who have completed forty-five ( 45) days of employment.

In all subsequent months after the completion of the forty-five (45) days of

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employment, the Company shall deduct dues from all employees who have worked in the month preceding the month in which the deduction is made.

3.02 All employees shall become members of the Union within forty-five (45) days of commencement of employment within the bargaining unit The Chief Job Steward or Union appointed designate will issue Union membership applications.

ARTICLE 4.00- MANAGEMENT RIGHTS

4.01 Management of the Company and the direction of the working forces are vested solely and exclusively in the Company and shall not be abridged, except by specific restriction as set forth in this Collective Agreement The Management rights as set out herein should not be deemed to exclude the other rights of Management at common law.

The Company retains the sole and exclusive control over all matters concerning the operation, management and administration of the business; the direction and control of employees, including qualifications; determination of quality and productivity; the right to determine processes and methods and procedures to be employed including technological change; the right to make and enforce rules, including safety matters, and to perform other functions inherent in the administration and control of the business.

4.02 During the term of this Collective Agreement the Company will implement Lean Manufacturing concepts in the plant The process of implementation and measurement will be determined by the Company and communicated to the Union and employees. Lean Manufacturing is a process of continuously improving workflow to increase efficiency and meet customer demand. Employees are trained to do multiple jobs and are involved in driving process improvements and efficiency.

4.03 During the term of this Collective Agreement the Company will implement a structured job rotation program in order to increase flexibility and reduce safety risks. Maintenance and Truck Driving personnel are exempt from the rotation program.

ARTICLE 5.00 - HOURS OF WORK

5.01 The standard work week shall consist of forty (40) hours comprised of five (5) consecutive eight (8) hour days, Monday to Friday. The standard shift schedule shall be as follows: Day Shift 6:00 am until 2:15 pm, Afternoon Shift 2:00 pm until 10:15 pm and Night Shift 10:00 pm until6:15 am. A shift schedule shall be posted by the time clock for all shifts worked including weekends. The schedule is to be posted no later than noon Thursday of each week for the following week of work. Schedule shall include all starting times and positions.

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Employees are responsible for obtaining their scheduled start time and position following an absence from the plant. Supervisors will call or email the employee once their scheduled start time and position following an absence from the plant, providing the employee provides a current local telephone number and/or a valid email address on the prescribed form for the purpose when the absence begins. Employees are responsible for retrieving messages left by the Supervisor for this purpose.

5.02 No guarantee by the Company of a full week's working time is hereby given. If an employee shows up for their scheduled shift and the Company did not tell the employee in advance to stay home, then the Company must pay the employee for four (4) hours wages at their applicable rate.

When an employee has been off work for a period of five (5) consecutive days or more, the Company shall provide the employee with a Record of Employment (R.O.E.).

5.03 Shift scheduling shall be as per Clause 5.01 with two (2) hours flexibility in either direction.

In lieu of the last fifteen (15) minute rest break in the latter half of the employee's shift, the parties agree to end the shift fifteen (15) minutes early. The last fifteen (15) minutes of the scheduled shift includes time to complete daily housekeeping, Operator Production Report and wash up. There shall be a fifteen (15) minute rest break before overtime begins, to be taken during the last fifteen (15) minutes of the scheduled shift. Flexibility up to thirty (30) minutes in the scheduled break times shall apply to the Shippers and Receivers in order to manage flow of materials and goods.

5.04 An employee who is called into work outside of their posted shift scheduled working hours shall receive a minimum of two (2) hours pay at the rate of time and a half (1Y2X) of their regular hourly rate of pay. Twenty-four (24) hours' notice will be given of a change in the required start time .

. ARTICLE 6.00 - OVERTIME

6.01 For the eight (8) hour schedule because of customer demands, there will be times when overtime will be scheduled during the standard work week. When these demands occur, the Company will provide the affected employees with four (4) hours' notice on the day the overtime is required, prior to the end of their shift.

However, due to circumstances not within control of the Company, (i.e. equipment failure or material orders not arriving when scheduled) the employee/employees may not receive a full four (4) hours' notice on the day the overtime is required.

Overtime shall be distributed in the following order:

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a) First (1 51), in order of senior employees holding the classification for which the overtime is required, that have signed the applicable Overtime Availability sign up sheet providing the employee has completed their normally scheduled shift, will be asked to volunteer.

b) Second (2"d), if there are insufficient volunteers holding the classification to work the required overtime, employees in the department with the skill and ability to perform the work that have signed the applicable Overtime Availability signup sheet and that have completed their normally scheduled shift, will be asked to volunteer.

c) Third (3'd), if there are insufficient volunteers in the department with the skill and ability to perform the required overtime, employees in the plant with the skill and ability to perform the work that have signed the applicable Overtime Availability sign up sheet and that have completed their normally scheduled shift plant wide, will be asked to volunteer. Then if there is still no volunteers, in reverse order of seniority, employees in the plant with the skill and ability to perform the work that have completed their normally scheduled shift, will be required to work the overtime.

A Weekday Overtime Availability signup sheet and a separate Weekend Overtime Availability sign up sheet will be posted with the weekly schedule.

There shall be no monetary claims or grievances arising from the Company's failure to offer or distribute overtime to any employee who has failed to indicate their availability on the Overtime Availability signup sheet posted for this purpose.

d) Under no circumstances shall a third (3'd) party temporary worker be scheduled to work overtime hours weekly or weekends, provided there is a willing full-time employee with the skill and ability to perform the overtime work. Overtime will be offered to employees first as a continuation or preceding their regular scheduled shift.

6.02 In an eight (8) hour schedule system all work performed in excess of eight (8) hours a day, but less than ten (1 0) hours, shall be paid for at the rate of time and a half (1 %X) of their regular hourly rate of pay and double time (2X) of their regular hourly rate of pay for all hours worked thereafter.

The first eight (8) hours of work performed on a Saturday shall be paid for at the rate of time and a half (1 %X) of their regular hourly rate of pay and double time (2X) for all hours worked thereafter.

All work performed on Sundays and/or General Holidays shall be paid for at the rate of double time (2X) of their regular hourly rate of pay for all hours worked,

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regardless of whether the employee has worked forty (40) regular hours in the week.

Notwithstanding, the first Monday shift in the weekly schedule shall start at 1 0:00 pm Sunday evening, the first two (2) hours of which will not be subject to overtime rates as listed above. Start till)es may change by up to two (2) hours in either direction, pending production needs.

6.03 The following ten (10) and twelve (12) hour shift examples applies only when the plant is working a one (1) or two (2) shift operation. When the Company requires all employees to work mandatory ten (1 0) hour shifts, the Company will provide the Union and the employees with one (1) week's written notice of such a requirement prior to the implementation.

Unless the Company deems Saturday overtime to be mandatory for all employees within the plant, the Company will provide written notice of six (6) working days, otherwise Weekend overtime shall be on a voluntary basis. Mandatory weekend overtime shall be limited to two (2) Saturdays a month, none of which shall be scheduled on a long weekend.

Weekend overtime for the Night shift would be scheduled as follows: 10:00 pm Friday to 6:15am Saturday paid for at the rate of time and one-half (1 %x) of their regular pay and double time (2X) thereafter for all hours worked in the shift. 10:00 pm Saturday to 6:15am Sunday paid for at the rate of double time (2X) of their regular rate of pay for all hours worked in the shift.

Employees shall be entitled to overtime rest breaks; one (1) rest break within every additional two and one-half (2%) hours of overtime worked, with the last fifteen (15) minutes of the work for daily housekeeping, Operator's Production Report and wash-up.

However, if there is a need for overtime, which would require the start of shift times to be altered by up to two (2) hours in either direction, so shall the scheduled break times be altered in the same direction.

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8 Hour Schedule

Day Shift Afternoon Shift Night Shift Shift Schedule 6:00 am to 2:15 j>m 2:00 _Q_m to 10:15 12_m 10:00 p_m to 6:15am Break (3 hours after Between 9:00 am & Between 5:00 pm & Between 1:00 am &

start) 10:00 am 6:00pm 2:00am Meal Break (5 hours Between 11 :00 am & Between 7:00 pm & Between 3:00 am &

after start) 12:00 pm 8:00pm 4:00am Housekeeping, OPR, 2:00pm to 2:15pm 10:00 pm to 10:15 pm 6:00 am to 6:15 am

Wash-up Shift Premium paid 12:00 noon up to 7:59 8:00 pm up to 12:00

when the shift pm am starts at:

10 Hour Schedule Day Shift Afternoon Shift

Shift Schedule 4:00am to 2:15pm 2:00pm to 12:15 am Break (2 hours after Between 6:00 am & 7:00 Between 4:00 pm & 5:00 pm

start) am Meal Break (5 hours Between 9:00 am & 1 0:00 Between 7:00 pm & 8:00 pm

after start) am Break (within each 2.5 Between 12:00 noon & 1 :00 Between 10:00 pm & 11 :00

hrs of OT) pm pm Housekeeping, OPR, 2:00 pm to 2:15 pm 12:00 am to 12:15 am

Wash-up Shift Premium paid 12:00 noon or later

when the ·shift starts at:

11 and 1/2 Hour Schedule Day Shift Afternoon Shift

Shift Schedule 4:00 am to 3:45 pm 4:00 pm to 3:45 am Break· (2 hours after Between 6:00 am & 7:00 Between 6:00 pm & 7:00 pm

start) am Meal Break (5 hours Between 9:00 am & 10:00 Between 9:00pm & 10:00 pm

after start) am Break (within each 2.5 Between 12:00 noon & Between 12:00 am & 1 :00 am

hrs of OT) 1:00pm Break (within each 2.5 Between 2:00 pm & 3:00 Between 2:00 am & 3:00 am

hrs of OT) pm Housekeeping, OPR, 3:30 pm to 3:45 pm 3:30 am to 3:45 am

Wash-up Shift Premium paid 2:00 pm or later

when the shift starts at:

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ARTICLE 7.00- RATES OF PAY

7.01 Employees shall be paid their regular hourly rate of pay for all regular hours worked up to and including the standard hours per work week as described in this Collective Agreement.

7.02 Nothing herein shall be construed to mean that the Company may not pay any employee or employees, more than the minimum rate, or rates, which may be payable from time to time under this Collective Agreement.

7.03 Job classifications with the applicable hourly rates of pay are listed below in Clause 7.07 and shall be effective January 1, 2016 for all new employees hired on or after January 1, 2013. New employees hired on or after January 1, 2013 shall be paid at the entry level hourly wage until they are deemed qualified. Once deemed qualified in their job classification, employees will then be paid at the appropriate hourly rate of pay in the applicable pay level. The pay ranges for those employees hired prior to January 1, 2013 are set out in the Letter of Understanding #6.

7.04 A Coordinator will receive a premium of one dollar and twenty-five cents ($1.25) per hour above their hourly rate of pay for all hours worked. Coordinator premiums shall not be compounded in overtime calculations.

7.05 Shift Premiums- Afternoon Shift premium of one dollar and five cents ($1.05) per hour will be paid for all hours worked on shift. Night shift premium of one dollar and fifty cents ($1.50) per hour will be paid for all hours worked on shift.

7.06 If an employee is directed to work in a classification paying a lesser hourly rate of pay than their normal classification, their rate shall not be reduced. However, if an employee is directed to work in a classification in a higher level (example; Level1 to Level 3 hourly rate) they shall be paid the higher hourly rate of pay for all hours worked during their shift in the higher pay level.

7.07 PAY LEVELS /JOB CLASSIFICATIONS

(All employees shall receive the following yearly wage increases listed below)

a) Hourly wage increases effective January 1, 2016: Status Quo; b) Hourly wage increases effective January 1, 2017: $0.10 per hour; c) Hourly wage increases effective January 1, 2018: $0.10 per hour; d) Hourly wage increases effective January 1, 2019: $0.30 per hour; e) Hourly wage increases effective January 1, 2020: $0.40 per hour;

Additionally to the above increases, ALL employees that are on the current seniority list at the time of ratification will receive a seven hundred and fifty ($750.00) dollar lump sum payment to cover the first year (2016) of the five-year Collective Agreement.

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(All employees hired since January 1, 2013)

CURRENT 2016 2017 2018 2019 2020 ENTRY $18.00 $18.00 $18.10 $18.20 $18.50 $18.90 LEVEL 1 $18.41 $18.41 $18.51 $18.61 $18.91 $19.31 LEVEL 2 $20.54 $20.54 $20.64 $20.74 $21.04 $21.44 LEVEL 3 $20.69 $20.69 $20.79 $20.89 $21.19 $21.59 LEVEL 4 $30.94 $30.94 $31.04 $31.14 $31.44 $31.84

Job classifications beginning at Entry through Level 1 to Level 4;

ENTRY - Trainee until deemed to meet production standard for the level of job hired for; then moves to pay for the level of the job;

I. LEVEL 1 -Custodian, Pack-out, Material Handler, Material Control Analyst, Receiver, Cutter, Loader and Sorter;

II. LEVEL 2- Sewer, Shipper, Matt Assembler and Box Spring Assembler;

Ill. LEVEL 3- Truck Driver, Quilter, Coil Operator and Closer;

IV. LEVEL 4 - Millwright, Electrician, Electro-Mechanical Technician and Maintenance Coordinator.

All employees hired before January 1, 2013 on the payroll at the time of ratification will continue to receive their yearly wage increases, even if they go outside of the pay ranges listed in the Letter of Understanding #6.

7.08 Posting into a Job Classification in a Higher Level

a) If an employee posts into a job classification one (1) level higher, they will be paid the minimum hourly rate for the new pay range or a five percent (5%) increase, whichever is greater.

b) If an employee posts into a job classification two (2) levels higher, they will be paid the minimum hourly rate for the new pay range or a ten percent (10%) increase, whichever is greater.

c) If an employee is above the pay range after moving to the higher level job classification, they will be paid a five percent (5%) increase in an annual lump sum payment.

7.09 If an employee hired before January 1, 2013 posts into a lower pay range, the hourly rate of pay will not change if it falls somewhere in the pay range. However, if the current hourly rate is above the maximum of the pay range, the hourly rate of

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pay will be reduced to the maximum of the pay range, as per Letter of Understanding # 6

ARTICLE 8.00- VACATIONS WITH PAY

8.01 For the purpose of calculating entitlement to vacation and payment thereof, the vacation year shall be from January 1st in any given year to December 31st. Vacation shall be taken in the vacation year following the year upon which the calculation is based.

Employees with less than five (5) years continuous employment shall receive vacation with pay in accordance with the requirements of the Employment Standards Code governing vacations with pay.

a) Employees with more than five (5) and less than eight (8) years of employment as of January 1st in any given year, shall be entitled to three (3) weeks' vacation with pay; such pay being equal to six percent (6%) of the gross pay earned by the employee in the year for which the vacation is given.

b) Employees with more than eight (8) and less than seventeen (17) years of employment as of January 1st in any given year, shall be entitled to four (4) weeks' vacation with pay; such pay being equal to eight percent (8%) of the gross pay earned by the employee in the year for which the vacation is given.

c) Employees with more than seventeen (17) years of employment as of January 1st in any given year shall be entitled to five (5} weeks' vacation with pay; such pay being equal to ten percent (1 0%) of the gross pay earned by the employee.

d) Employees with more than twenty-seven (27) years of employment as of January 1st in any given year shall be entitled to six (6) weeks' vacation with pay, such being equal to twelve percent (12%) of the gross pay earned by the employee in the year for which the vacation is given.

8.02 The Company will only issue a separate cheque for vacation pay for five (5) continuous days or longer of vacation. Vacations of less than four (4} days will not be paid in advance, unless a General Holiday is paid in the same pay period.

8.03 Because of the nature of the business operations, no employee shall have more than three (3) consecutive weeks' vacation at any one time. Whereas the Company will attempt to take into consideration the wishes of the employees as to the time when vacation can be taken, it reserves unto itself the final decision as to the time of said vacations.

Senior employees' requests will be given priority over junior employees (by department) where conflicts in vacation scheduling arise. The Company however, assures the Union that it will endeavour to set annual vacations during the summer

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months of each calendar year. All vacation requests will be considered, however, production requirements will take priority.

8.04 As of January 1st in any year the Company will post a notice on all notice boards in the plant, inviting employees eligible for vacations in that vacation year to indicate their preference for vacation assignment for the period of April 1st to September 30th. The invitation will be held open from January 1st to February 1st. By March 31st, the Company will post the approved vacation schedule.

On August 1st in any year the Company will post a notice on all boards in the plant, inviting employees eligible for vacation in that vacation year to indicate their preference for vacation assignment for the period between October 1st to March 31st of the following year. This invitation will be open from August 1st to September 1st. On October 1st, the Company will post the approved vacation schedule.

When requesting vacations, employees are to provide three (3) choices in order to accommodate all employees' requests. In the event any of the employee choices cannot be accommodated, alternate dates will need to be submitted within the time period specified by the Company. The Company will utilize the information entered on this document, as contemplated in Clause 8.03 above.

8.05 On November 1st, 2016 the Company will post a notice on all boards in the plant, inviting employees eligible for vacations in the 2017 vacation year to indicate their preference for vacation assignment for the period of January pt to March 31st, 2017. On January 10th, 2017 a schedule outlining all employees' vacations in that period will be posted on all notice boards.

As of April 1st and October 1st of each year, a schedule outlining all employees' vacations scheduled in that period will be posted on all notice boards. Employees wishing to book a vacation time prior to the April 1st (January 1st - March 31st) posting of approved vacation time, will be informed in person as to whether they have been approved or not, by their immediate Supervisor.

8:06 Employees may not cancel scheduled vacations without two (2) weeks written notice, unless agreed upon by the Company and approved by the Operations Manager and Human Resources Manager.

ARTICLE 9.00- GENERAL HOLIDAYS

9.01 The following General Holidays shall be paid for if not worked, subject to the conditions hereinafter set forth:

New Year's Day Good Friday Victoria Day

Thanksgiving Day Remembrance Day Christmas Eve

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Canada Day August Civic Holiday Labour Day

Christmas Day Boxing Day Family Day

a) The basis of pay for the above named holidays shall be eight (8) hours times their hourly rate.

b) An employee shall not be eligible for payment of holiday pay when:

i) the employee has not worked for the Company a total of thirty (30) days during the preceding twelve (12) months, or

ii) the .employee has absented himself/herself from work without the consent of the Company on either the employee's last regular working day preceding, or the employee's first regular working day following the particular holiday, or

iii) the employee has been suspended without pay, or

iv) the employee is on a leave of absence at the time the holiday falls.

9.02 Should a General Holiday fall during the week an employee is on vacation, an additional day off with pay will be granted on the basis of the foregoing.

9.03 When one of the above granted General Holidays falls on Saturday, Sunday or an employees regularly scheduled day off, the following or preceding work day shall be observed as the holiday. The particular day-in-lieu shall be determined in advance by the Company. The Union shall be notified of any changes to the above holiday's observance, and notice posted sixty (60) days in advance for all employees to view.

ARTICLE 10.00- SENIORITY

10.01 Seniority shall be established in terms of years, months and days after each employee has had forty-five (45) working days continuous service in a position covered by this Collective Agreement. Such seniority shall be effective from the date of employment. In the event one (1) or more employees hired were on the same day, their seniority shall be listed in alphabetical order.

10.02 Employees with less than forty-five (45) working days continuous employment shall be considered probationary. Probationary employees may be dismissed at the sole discretion of the Company for any reason provided such decision is made in good faith and is not discriminatory.

10.03 Any employee will lose their seniority rights under this Collective Agreement and will not be considered an employee if;

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a) the employee voluntarily leaves their employment with the Company;

b) the employee is discharged;

c) the employee has been laid off for a period of six (6) months;

d) the employee has been laid off for a period of less than six (6) months and fails to return to work or to give in writing valid reasons for their inability to do so within three (3) working days of the date the employee has been requested by the Company in writing to return to work;

e) the employee overstays a leave of absence granted by the Company in writing without securing an extension of such leave;

f) the employee is absent from work for more than three (3) days without securing leave of absence or without producing evidence of a sufficient reason satisfactory to the Company.

10.04 The Company shall post a Seniority List every six (6) months covering all regular full-time employees.

ARTICLE 11.00 - VACANCIES AND JOB POSTINGS

11.01 When filling vacancies in any job classifications listed in Clause 7.07 other than on a temporary basis (five (5) working days or less), plant-wide seniority will be considered providing ability, experience and competence are deemed equal among the employees concerned, and subject to the right of the Company to make the final decision.

11.02 No senior employee will be displaced for a job vacancy, if they can work to the engineering standard for that job. Senior employees will be given the opportunity to decide which shift to work when more than (1) one shift is being worked.

11.03 In making appointments the Company undertakes to look first at the availability of incumbent employees for the position. If, however, in the Company's opinion there are no suitable incumbent employees, the appointment shall be made from any source.

11.04 Any employee who applied to be appointed to a vacancy and was refused the appointment shall have the recourse to the Article 15.00- Grievance Procedure on the basis of an allegation that in making the appointment the Company acted in bad faith.

Any employee who applies to be appointed to a vacancy posted per Clause 11.06 shall do so in good faith, and shall not withdraw from the job posting after being posted as the successful bidder without submitting valid written reasons to the

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Human Resources Manager for consideration. Employees with a pattern of bidding on job postings and withdrawing from the posting after being posted as the successful bidder will be restricted from bidding on job postings for a period of six (6) months. The Company and employee may mutually agree to waive this restriction.

11.05 When filling vacancies for Coordinators, the vacancy will be posted for three (3) working days, and will be filled as and when necessary based on skill, ability, experience and competence of those employees concerned.

11.06 All vacancies occurring in regular full-time jobs shall be posted for a minimum of three (3) working days. Interested applicants must apply in writing to the Human Resources Manager. Vacancies will be filled as and when necessary pursuant to Clause 11.01 herein.

The Company shall endeavour to contact, by phone, any employee absent on vacation during the period of posting provided the employee leaves a phone number, with the Human Resources Office, where the employee can be reached. An Employee must be qualified in their current position for a minimum of six (6) months prior to applying to a new posting. The Company and employee may mutually agree to waive this restriction.

ARTICLE 12.00- LAYOFF AND RECALL

12.01 In cases of lay off due to shortage of work, employees shall be laid off according to plant-wide seniority providing ability, experience and competence are equal. Probationary employees will be laid off first with exception of Maintenance employees and Truck Drivers, who are not subject to such layoff.

In cases of layoff, recalled employees will be paid the maximum of the pay range for the job they are performing or their current hourly rate, whichever is lower. No senior employee will be displaced from a job, if they can work to the production standard for that job.

12.02 When employees with twenty (20) years of service or more is unable to work to the production standard for the job they are currently employed in, the Company will endeavour to re-train this employee in another job.

ARTICLE 13.00- BEREAVEMENT PAY

13.01 Provided an employee has completed their probationary period, in the event of a death of a Mother/Step Mother, Father/Step Father, Spouse, or Child an employee shall be allowed up to a maximum of five (5) working days' absence without loss of pay for the purposes of attending or making arrangements for the funeral. In the event of a death in the immediate family an employee shall be allowed up to a maximum of three (3) working days' absence without loss of pay for the purposes

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of attending or making arrangements for the funeral.

The term "immediate family" shall be deemed to include Brother or Sister, Mother­in-law, Father-in-law and Grandparents and Grandchildren of the employee. In the event the employee must travel outside of the province of Alberta for the purposes of attending the funeral an additional one (1) day leave without loss of pay shall apply to each of the above circumstances upon the employee providing proof of travel outside of the province of Alberta on or about the dates the funeral is held. The basis of pay for all bereavement leave will be eight (8) hours paid at the employee's hourly wage rate per day of approved leave.

ARTICLE 14.00- NO INTERRUPTION OF WORK

14.01 The Company agrees they will not cause or direct any lockout of their employees and the Union agrees that neither the Union nor the members of the bargaining unit will cause or take part in a strike, slowdown or other stoppage of or interference with work which would cause any interruption in production during the term of this Collective Agreement. Further, it is agreed that there shall be no secondary boycotts.

ARTICLE 15.00- GRIEVANCE AND ARBITRATION PROCEDURE

15.01 In the event that a dispute arises between the Company and the Union on the one hand or the Company and one ( 1) or more employees on the other hand, regarding the interpretation, application or alleged violation of this Collective Agreement, such dispute shall be settled without stoppage of work or lockout by way of one of the following procedures of settlement as applicable:

By the Employee

Step 1

Step 2

The employee or employees concerned, with or without a Job Steward in attendance, shall first seek to settle the dispute in discussion with the immediate supervisor.

If the dispute is not resolved satisfactorily in Step 1, it then becomes a grievance. Once a grievance is filed, the Chief Job Steward or Union Agent/Representative will be present. This grievance shall then be reduced to writing, setting forth:

a) the nature of the grievance and the circumstances out of which it arose;

b) the remedy or correction required;

c) the section or sections of the Collective Agreement infringed upon, or claimed to have been violated.

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Step 3

Step 4

The written grievance shall be submitted in this form to the Production Manager or their designate within ten (1 0) days of the act causing the grievance. The Production Manager or their designate shall make known their decision to the griever within five (5) days of receipt of the grievance.

In the event that the reply in Step 2 is unsatisfactory to the griever, the griever shall then submit the grievance to the Human Resources Manager within five (5) days of the receipt of the grievance in Step 2. The Human Resources Manager or their designate shall make known their decision to the griever within five (5) days of their receipt of the grievance.

In the event that the reply in Step 3 is unsatisfactory to the griever, the griever may then submit the grievance to Arbitration within seven (7) days of receipt of the decision of the Human Resources Manager.

Arbitration proceedings shall be in accordance with the provisions of the applicable sections of the Alberta Labour Code.

By the Union or the Company

In the event that either the Company or the Union on their own behalf wish to process a grievance, such grievance shall be submitted by the one (1) party to the other, in writing, and shall be submitted within ten (1 0) days of the act causing the grievance. The party in receipt of the grievance must make known its decision regarding the grievance to the other party within ten (1 O) days of receipt. In the event that the grievance is not resolved at this time, either party may submit the grievance to Arbitration within seven (7) days of the rendering of the decision. The arbitration proceedings shall be in accordance with those applicable sections of the Labour Relations Code.

15.02 The time limits expressed in the foregoing shall be exclusive of Saturdays, Sundays and General Holidays and normal time off.

15.03 In the event the initiator of the grievance fails to follow the procedure and time limits established in this Article, the grievance shall be deemed to be abandoned. Where the recipient of the grievance fails to respond within the time limits prescribed, the grievance shall advance to the next step.

15.04 The Board of Arbitration shall not be vested with the power to change, add to, delete or amend the terms of this Collective Agreement.

15.05 The parties agree to the principle of discipline for just cause. The parties also agree that in the event an employee is to be disciplined by management, they shall have

15

the right to Union representation through Job Stewards, Agents and/or Representatives.

Disciplinary records will be valid for an established period of time and may not be relied upon for subsequent disciplinary actions beyond this period.

The valid periods are: Verbal and written warnings, suspensions- twelve (12) months.

ARTICLE 16.00- LEAVE OF ABSENCE

16.01 Individual employees may, with the Company's consent in writing, obtain a leave of absence without pay when in the opinion of the Operations Manager or Human Resources Manager, conditions so warrant. The written consent will state the dates at which the leave begins and ends.

16.02 Application for leave of absence must be made to the Operations Manager. If the reasons for a leave of absence are of a personal nature, the employee may elect to discuss the reasons with the Human Resources Manager having first obtained permission to do so from the Operations Manager.

16.03 The Company will endeavour to accommodate an employee's request for all leaves of absence by responding in writing within five (5) working days of the written request.

16.04 The Company shall grant Maternity Leave and Parental/Adoption Leave as in accordance with the Alberta Employment Standards Code.

During these leaves of absence the employee will continue to accrue seniority and their Company paid benefits will be maintained by the Company.

ARTICLE 17.00- GENERAL CONDITIONS

17.01 The Company will provide bulletin boards in suitable locations, which may be used by the Union for posting notices of their activities. All such notices will be submitted to the Human Resources Manager or their designate for approval, which approval shall not be unreasonably withheld, prior to posting. Such approval will be signified by the initials of the Human Resources Manager or their designate appearing on each notice.

17.02 The Company undertakes to continue its current practice in the issuance of protective clothing. The Company will supply protective clothing to Maintenance employees.

17.03 The Company shall provide clean, suitable, sanitary facilities and a clean, heated lunchroom, which shall not be used for storage of tools or equipment.

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17.04 The parties agree that there will be no discrimination on the basis of the Alberta Human Rights Act.

17.05 The Company will provide a meal allowance of eleven dollars ($11.00) or the Company will supply a meal to those employees working overtime after ten (1 0) hours per shift.

ARTICLE 18.00 - ACCIDENT PREVENTION AND SAFETY

18.01 The Company shall continue to make reasonable provision for the safety and health of its employees at the Plant during the hours of their employment.

The Company shall provide transportation to and from an appropriate health care provider for any employee incurring an injury at work that requires medical treatment and transportation home.

The name and location of the First Aid person is to be posted on the bulletin board.

18.02 The Company will recognize two (2) members of the bargaining unit as representatives of the employees on a Safety Committee. The Safety Committee will be made up of equal numbers of unionized hourly employees and management employees. This committee shall meet at least once per month at a mutually agreed time.

18.03 Should an employee suffer a compensable injury necessitating loss of time from the work place, the employee shall be compensated for all time lost on the day the accident occurred.

18.04 The Company will provide a safety shoe allowance to all full-time employees, upon receipt of proof of purchase, in the amount of two hundred and forty dollars ($240.00) over two (2) cale~dar years effective January 1st, 2008.

(New employees to complete Probationary Period before becoming eligible for this benefit)

18.05 Lifting as per Occupational Health & Safety (O.H.&S.) Code.

ARTICLE 19.00- HEALTH AND WELFARE

19.01 The Company will pay one hundred percent (100%) of the premium for Alberta Health Care Insurance.

19.02 The Company will pay one hundred percent (1 00%) of the premium for the Health and Welfare benefits as set out below:

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1) Member Life Insurance: $60,000.00 Dependent Life Insurance (Spouse and dependent child): $7,500.00

2) Extended Health Care: Effective January 1, 2008, Extended Health Care coverage through Sun Life Assurance Company of Canada to include prescription drugs, semi-private hospital, supplementary health care, and vision- ($220.00/24 months). Benefit Drug Card to be supplied. The deductible on prescription drugs will be one dollar ($1.00) per prescription.

3) Dental Plan: Effective May 1, 1989 there will be Basic Preventive Dental Plan for employees, one hundred percent (1 00%) paid by the Employer.

Effective May 1, 2000, restorative benefits will be reimbursed at seventy-five percent (75%). Rates will be based on the Canadian Dental Association schedule of rates for the current year.

Dental coverage maximum effective January 1, 2004 seventeen hundred and fifty dollars ($1 ,750.00) per year.

4) Long Term Disability: To fifteen hundred dollars ($1 ,500.00) per month, employee paid effective January 1, 2004.

5) Short Term Disability: Company paid sixty six point six -seven percent (66.67%) of earnings to the current El maximum per week First (1 51) day of accident First (1 51) day of hospital Fourth (41h) day of sickness Twenty-six (26) week benefit period

19.03 An employee is not eligible for benefits under this section (Article 19.00- Health & Welfare) until they complete their probationary period (Article 10.00 - Seniority). During periods of lay off, the Company will continue to provide Health and Welfare benefits to employees for up to thirty (30) days after the employee/employees have been laid off.

ARTICLE 20.00- GENERAL INFORMATION

20.01 Should new classifications of employees be introduced during the lifetime of this Collective Agreement, the Company shall set the rate for the classifications. In the event that the Union disagrees with the rate set, the issue will be negotiated and failing settlement shall be submitted to arbitration for final settlement. The rate determined by the Arbitration Board shall be effective the date the Union appealed the rate determined by the Company.

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20.02 In cases of extreme emergency, or for unforeseen lateness and/or absenteeism (not to exceed one (1) day) management may do bargaining unit work. The foregoing shall not apply when an employee of the bargaining unit capable of doing the work is available in the plant. An extreme emergency will be defined as the Company's need to service our customers on a just in time basis.

ARTICLE 21.00- LABOUR/MANAGEMENT RELATIONS COMMITTEE

21.01 The Company and the Union agree to establish and maintain a Labour­Management Relations Committee consisting of no more than three (3) representatives of the Management of the Company and no more than three (3) representatives of the Union, one (1) of the Management representatives to be the Human Resources Manager of the Company or their designate, and one (1) of the Union representatives to be the Chief Job Steward. The objective of this Committee shall be to provide and facilitate cooperation and participation in bringing forward ways and means of improving productive efficiency, promoting fuller understanding and confidence between the Company and the Union and maintaining harmonious mutual relations between them.

This Committee shall meet at least once every three (3) months at such time and place as shall from time to time be determined mutually by the members thereof. An Agenda of the matters proposed to be discussed and considered will be sent to the parties at least three (3) days prior to the meeting. Matters of mutual concern pertaining to improvement of working conditions, safety and any problems which arise in the course of administration of this Collective Agreement may be referred to this Committee for discussion.

ARTICLE 22.00- PRODUCTIVITY PLAN

22.01 Production standards have been established for all direct labour jobs as set out in Clause 7.07 of the Collective Agreement. These production standards represent the minimum required output of employees performing these tasks. Such production standards shall remain intact except where an operation has been changed due to a revision of method, a change in machinery or material or in the event of a gross error in data application. Such production standards may be made the subject of grievance subject to the Productivity Plan Grievance and Arbitration provisions as attached hereto. Production standards will be made available to employees. The production standards are in a binder at a central location by the time clock.

22.02 Indirect labour employees or those performing work that does not have a production standard are required to perform the duties outlined in the job description for their job classification, which may be amended from time to time.

22.03 Employees who do not match the expectations of learning curves will be counselled and given additional training, if they continue not to match the expectations they

19

will be removed from the position. Those who do not satisfactorily improve to an acceptable level, or at an acceptable rate, during any period, and maintain such a level, will be subject to disciplinary action.

22.04 All complaints arising as to the achievability of any production standard may be handled as grievances in accordance with Article 15.00 of the Collective Agreement, and subject to what is provided below.

a) Prior to the introduction of new or revised production standards, five (5) working days will be set aside for discussions with the Union on these changes. During this period, information will be provided to the Union on the method of developing or revising those production standards and an attempt made to resolve disagreements. At the end of the five (5) day period the new or revised production standards will be implemented.

b) Before submitting any grievance on a production standard, employees will work at a normal effort on the production standard for a period of at least ten (1 0) working days. If after ten (10) working days from the date on which the production standard was implemented, the Union is not satisfied with the production standard, the Union shall have the right to submit a grievance.

c) Failure to submit a grievance within the forty (40) working days from the date a production standard was implemented shall constitute acceptance of the production standard and this production standard cannot be subsequently grieved.

d) Performance of one hundred percent (1 00%) or more against a production standard will verify the production standard to be achievable.

ARTICLE 23.00- DURATION

23.01 This Collective Agreement shall remain in force and effect from January 1, 2016 to December 31, 2020 and from year to year thereafter unless notification of termination or amendment be given in writing by either party not less than sixty (60) days and not more than one hundred and twenty (120) days prior to its expiration date.

ARTICLE 24.00- SEVERANCE PAY

24.01 The Company agrees to give the Union a minimum of six (6) months' notice of the closure or transfer of its manufacturing operations, or a complete area thereof, or the deletion of a classification which would directly cause the lay-off or termination of employees.

a) An employee who has less than fifteen (15) years' service shall be entitled to severance of one and one-half (1'12) weeks' pay for each year of service.

20

b) An employee who has fifteen (15) years or more of service shall be entitled to severance of two (2) weeks' pay for each year of service.

c) Benefits will continue for three (3) months from the time of lay-off or termination.

DATED THIS DAY, THE 6C/A- OF IJ1cu; AT CALGARY, ALBERTA.

, 2016

FOR THE COMPANY: FOR THE UNION: SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS CANADA)

INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 955

Bruce Moffatt

UNION NEGOTIATING COMMITTEE

BRUCEKOSMACK-CH~RMAN JIM KING - CO-CHAIRMAN

LEE BEACH - MEMBER KHUSHWANTSANDHU-MEMBER

21

LETTER OF UNDERSTANDING #1

BETWEEN

SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO.

{SIMMONS CANADA) (Hereinafter referred to as the Company)

AND

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955

(Hereinafter referred to as the Union)

The Company undertakes to train employees during the length of this Collective Agreement in the following ways:

1. The Company will have training a minimum of one (1) employee per week, unless our customer demands do not allow us to do this.

2. The Company and Union will meet regularly or as needed to discuss the training of employees.

3. Training will be done in accordance to business needs (i.e. Lean Manufacturing).

DATED THIS DAY, THE ~ ·n~ OF )dl.\1 , 2016 AT CALGARY, ALBERTA.

For the Employer: SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS

22

For the Union: INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 955

Bruce Moffatt

LETTER OF UNDERSTANDING #2

BETWEEN

SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO.

(SIMMONS CANADA) (Hereinafter referred to as the Company)

AND

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955

(Hereinafter referred to as the Union)

RE: PRESCRIPTION DRUGS

The Parties agree there will be a cap of eight ($8.00) dollars per prescription, per person for prescription dispensing fees.

The cap will be reviewed in December of each year of the Collective Agreement to ensure the cap on dispensing fee is competitive within the prescription industry.

DATED THIS DAY, THE c, -r./ OF *'/ , 2016 AT CALGARY, ALBERTA I

For the Employer: SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS CANADA)

23

For the Union: INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 955

Bruce Moffatt

Mike Bourgeois v

LETTER OF UNDERSTANDING #3

BETWEEN

SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO.

(SIMMONS CANADA) (Hereinafter referred to as the Company)

AND

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955

(Hereinafter referred to as the Union)

RE: TO ALL SIMMONS HOURLY EMPLOYEES

Simmons Canada has a voluntary Pension Plan that all employees are eligible to join after completing the probationary period as outlined in the Collective Agreement.

DATED THIS DAY: THE G (.1 OF rf!Ay ' 2016 AT CALGARY, ALBERTA

For the Employer: SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS CANADA

24

For the Union: INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 955

Bruce Moffatt

Mike Bourgeois / ._.

LETTER OF UNDERSTANDING #4

BETWEEN

SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO.

(SIMMONS CANADA) (Hereinafter referred to as the Company)

AND

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955

(Hereinafter referred to as the Union)

RE: FUTURE PLANT LOCATION

The parties acknowledge that in the course of bargaining for the parties' 2016-2020 Collective Agreement, the Union was apprised of significant changes that will affect the bargaining unit, including the possibility of closure of the existing production facility and movement of work to a new plant in the area where there will be more automation in the manufacturing processes and resultant changes in job classifications and pay plans.

The Union has been advised that some of the changes in job classifications may require revisions to the job bidding, layoff/recall and overtime assignment. The Company and Union have agreed to the following process to ensure open communications and meaningful dialogue over such matters for the term of the 2016-2020 Collective Agreement:

1. The Union will be given at least thirty (30) calendar days' written notice of relocation of work to a new plant, automation of manufacturing processes and related changes in job classifications and pay plans. The Union retains the right to bargain about the effects of such changes, including any corollary changes in job bidding, overtime assignments, layoff, and recall procedures.

2. The parties will meet and bargain in good faith over any such matters which the Union wishes to address after receiving the Company's written notice, and the parties agree that such matters will be referred to the bargaining table and will not be the subject of the grievance procedure (other than an alleged failure by the Company to comply with the process outlined in this Letter of Understanding). The No Strike-No Lockout provisions of the Collective Agreement shall remain in effect during and after such negotiations.

3. The parties will memorialize any agreements reached regarding such effects bargaining in a written Memorandum of Understanding.

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4. If the parties have been unable to reach agreement within thirty (30) days of the Union's receipt of the Company's written notice or an agreed extension thereof, the Company may provisionally implement changes consistent with its proposals to the Union, provided that 1) no employee will suffer a decrease in their individual rate of pay as a result of any such provisional change, unless they voluntarily bid into a lower rated job, and 2) the Union specifically reserves the right to negotiate further over such matters for the balance of the term of this Collective Agreement as well as when this Collective Agreement is open for renegotiation in 2020, including the right to negotiate for retroactive adjustments to any matters about which the parties did not reach full agreement.

Nothing in this Letter of Understanding is intended to apply to or limit in any manner the flexibility the Company has previously possessed or exercised to introduce new equipment, facilities, technology, work processes, lean manufacturing initiatives and other managerial direction of the work and of the work force.

This Letter of Understanding shall expire with the 2016-2020 Collective Agreement and shall not be renewed or extended for future contracts without mutual agreement of the parties.

DATED THIS DAY, THE L {;I( OF ---t--.:.J~~~\.1 ___ , 2016 AT CA'ffiARY, ALBERM (

For the Employer: SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS CA

26

For the Union: INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 955

Bruce Moffatt

LETTER OF UNDERSTANDING #5

BETWEEN

SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO.

(SIMMONS CANADA) (Hereinafter referred to as the Company)

AND

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955

(Hereinafter referred to as the Union)

RE: POSSIBLE WORK SCHEDULE ALTERNATIVES

The Company in cooperation with the Union will test new work schedules in the Shipping Department for a defined period i.e. six (6) months to determine viability, effectiveness and acceptance of the test schedule into a regular schedule.

Process

On a voluntary basis, a department would trial new work schedules, which are to be considered and developed cooperatively by a Scheduling Committee, which shall be composed of three (3) members of management and three (3) employee representatives nominated by the Union. At least one of the Union members will be part of the affected group being trialed.

Seniority would be used to place volunteers in the resulting positions and shifts.

Upon implementation of the test schedule, the Scheduling Committee would meet monthly to discuss the impact and effectiveness of such schedules for at least six (6) months and not more than twelve (12) months (the Trial Period). Any adjustments to the schedule or the process during the Trial Period will be made by mutual agreement of the Scheduling Committee, to be reviewed in the following month's Scheduling Committee meeting.

Upon completion of the Trial Period and a final decision, the Scheduling Committee will determine the viability of applying this process to other departments. No extension of any test schedules, or development of new test schedules, will be made without mutual agreement.

The parties will then determine by mutual agreement that the schedule testing process will start again, within the new area/department established by the Scheduling

27

Committee.

The Scheduling Committee will convene its first meeting before the end of June 2016.

/' ,~, ~~ DATED THIS DAY, THE lt? OF_+=-+-A"*-t( ___ , 2016

AT CALGARY, ALBER"fA. f

For the Employer: SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS CANADA)

28

For the Union: INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 955

Bruce Moffatt

LETTER OF UNDERSTANDING #6

BETWEEN

SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO.

(SIMMONS CANADA) (Hereinafter referred to as the Company)

AND

INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955

(Hereinafter referred to as the Union)

RE: TRANSITIONAL PAY RATES

For the purposes of transitioning from the incentive pay structure to the standard hourly pay rate structure introduced in 2013, the following grid shall apply by job classification as outlined in Clause 7.07.

MIN MID MAX ENTRY $18.00 LEVEL 1 $18.41 $20.85 $24.39 LEVEL 2 $20.54 $23.22 $26.98 LEVEL 3 $20.69 $24.53 $29.08 LEVEL 4 $30.94 $33.75 $36.66

. DATED THIS DAY, THE 0 ~~ OF rt~~ , 2016 AT CALGARY, ALBERT

For the Employer: SIMMONS CANADA, A DIVISION OF SSH BEDDING CANADA CO. (SIMMONS

29

For the Union: INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 955

Bruce Moffatt